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Argentina’s YPF sells power unit stake to fund RE investments

GE buys stake in YPF Energía Eléctrica as Argentine state energy company prepares for wind build-out

Argentina’s state-controlled oil and gas company YPF has sold a 24.99% stake in its power subsidiary, YPF Energía Eléctrica (YPF EE), to US conglomerate GE, and is looking to sell another 24.5% of the company to an unnamed group, the company said in a statement to the Buenos Aires stock exchange.

The share sale aims to raise cash for its $1.3bn investment programme to build 485MW of new capacity, including several wind projects contracted under Argentina’s renewable energy tendering programme, RenovAr.

The sale to GE, expected to be concluded on 28 February, is estimated at $275m, with an additional $35m if some undisclosed conditions are met.

“This capital injection will allow YPF EE to accelerate its business plans,” the company said in the statement.

Under a shareholders agreement, YPF and GE will jointly manage the company.

Like several oil and gas companies in Argentina, YPF has been investing in renewables mainly for self-supply in order to meet the 20% renewables target for 2025.

YPF may also sell renewable power to third parties, including other large industries who also have to meet the target.

Last year, YPF told Recharge it was aiming to reach 600MW of renewable capacity by 2021 to supply 100% of its operation, including investments in wind, solar and biomass generation.

The company is currently building the 100MW Manatiales Behr wind farm, which will add to its 1.8GW of generating capacity – most of it combined-cycle gas.

YPF EE was created in 2013 to help diversify the country away from oil and gas. The Argentine government controls 49% of YPF with the rest held by minority stakeholders.

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Argentina’s YPF sells power unit stake to fund RE investments

Argentina’s YPF sells power unit stake to fund RE investments

GE buys stake in YPF Energía Eléctrica as Argentine state energy company prepares for wind build-out

Argentina’s state-controlled oil and gas company YPF has sold a 24.99% stake in its power subsidiary, YPF Energía Eléctrica (YPF EE), to US conglomerate GE, and is looking to sell another 24.5% of the company to an unnamed group, the company said in a statement to the Buenos Aires stock exchange.

The share sale aims to raise cash for its $1.3bn investment programme to build 485MW of new capacity, including several wind projects contracted under Argentina’s renewable energy tendering programme, RenovAr.

The sale to GE, expected to be concluded on 28 February, is estimated at $275m, with an additional $35m if some undisclosed conditions are met.

“This capital injection will allow YPF EE to accelerate its business plans,” the company said in the statement.

Under a shareholders agreement, YPF and GE will jointly manage the company.

Like several oil and gas companies in Argentina, YPF has been investing in renewables mainly for self-supply in order to meet the 20% renewables target for 2025.

YPF may also sell renewable power to third parties, including other large industries who also have to meet the target.

Last year, YPF told Recharge it was aiming to reach 600MW of renewable capacity by 2021 to supply 100% of its operation, including investments in wind, solar and biomass generation.

The company is currently building the 100MW Manatiales Behr wind farm, which will add to its 1.8GW of generating capacity – most of it combined-cycle gas.

YPF EE was created in 2013 to help diversify the country away from oil and gas. The Argentine government controls 49% of YPF with the rest held by minority stakeholders.

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